The DETERRENT Act strengthens how colleges and universities must report and manage their relationships with foreign governments and entities. Here's what it does in practical terms:

Colleges that receive federal research funding must now disclose all gifts and contracts from foreign sources to the Department of Education. For regular foreign sources, they report gifts worth $50,000 or more. But for countries and entities the U.S. considers concerning—like China or designated terrorist-linked organizations—colleges must report every gift and contract, no matter the value. The government then creates a public searchable database so anyone can see what foreign money is flowing into American universities. Faculty and researchers at large research institutions also have to report their own foreign gifts and contracts to their colleges.

The law also bans colleges from entering into contracts with foreign countries of concern or problematic foreign entities, though the Secretary of Education can grant one-year waivers if the contract benefits the college's mission and promotes U.S. security and economic interests. If a foreign source becomes designated as a concern during an existing contract, the college has 60 days to end it. Colleges must establish compliance policies, designate compliance officers, and maintain records for at least five years.

Violations carry serious penalties. Colleges that knowingly fail to report can face fines ranging from $50,000 per unreported gift or contract up to 10% of their total federal education funding. Repeat violations double the penalties. The most severe consequence: colleges with three separate violations lose eligibility for all federal education funding for at least two years and must prove compliance for two additional years to regain it. The law also requires the government to share all reports with intelligence agencies, the FBI, and the State Department within 30 days.

DETERRENT Act

Tillis, Thomas

Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act or the DETERRENT ActThis bill expands oversight and disclosure requirements related to foreign sources and institutions of higher education (IHEs).Specifically, the bill requires an IHE to annually disclose to the Department of Education (ED) any year in which the IHE<ul><li>receives a gift from a foreign country of concern (e.g., China or Russia) or foreign entity of concern of any dollar amount;</li><li>receives a gift or contract from a foreign source (other than a foreign country of concern or foreign entity of concern) that is valued at $50,000 or more, considered alone or in combination with all other gifts or contracts within a calendar year (current disclosure threshold is $250,000 or more), or which has an undetermined monetary value;</li><li>enters into a contract with a foreign country of concern or foreign entity of concern after receiving a waiver for such contract; or</li><li>is substantially controlled by a foreign source.</li></ul>Additionally, the bill<ul><li>prohibits IHEs from entering into contracts with a foreign country of concern or with a foreign entity of concern without obtaining a waiver, and</li><li>requires certain IHEs to disclose gifts or contracts between covered individuals (e.g., researchers) and foreign sources.</li></ul>The bill requires ED to investigate possible violations of this bill and outlines the various penalties for each violation. Penalties may include losing eligibility for federal student financial aid.